Patent Business Lawyer in Asia

ICO LAWS AND COMPLIANCE

ICO Regulations and Legal Framework

Blockchain Law

Legal Aspects of Cryptocurrency and ICO

Initial Coin Offering

Initial Coin Offerings (ICO) and Cryptocurrencies are attracting investors at an exciting pace, whereas regulatory aspects of ICO and cryptocurrency present major challenges across various nations. This write-up is aimed at discussing legal, tax, accounting, know your customer (KYC), anti-money laundering (AML) and business due diligence aspects for the FinTech (Financial Technology) sector, with a special focus on ICO and Cryptocurrencies.

Global Blockchain Lawyers (www.GlobalBlockchainLawyers.com) is a digital platform to discuss legal issues, latest technology and legal developments, and applicable laws in the dynamic field of Digital Currency, Blockchain, Bitcoin, Cryptocurrency and raising capital through the sale of tokens or coins (ICO or Initial Coin Offerings).

Technology Business Corporate Lawyers

Strong expertise in resolving business and personal disputes via mediation, negotiation and out of court settlements

Managing full practice law firm in Delhi and Gurgaon with team of legal experts – Civil and Criminal, Cyber Law Issues, Digital Business Disputes, Social Media Defamation, Personal, Property and Matrimonial Problems, Contracts and Agreements

Considering an Initial Coin Offering (ICO) requires expert legal strategy due to the dynamic nature of applicable laws, including, securities, taxation, corporate structure and agreements. An ICO is also considered as a Token Generation Event (TGE), which refers to a novel way to raise capital by issuing crypto tokens. Companies issuing tokens or coins via ICO generally structure the offering in a manner such that the tokens or coins are linked to a smart contract on the Ethereum blockchain or similar platform.

In essence, the tokens or the coins are issued as a right to use the technology that is being funded by the ICO. It would be apt to compare an ICO with an Initial Public Offering (IPO), wherein shares of a company are issued to the investors. It is a common belief that tokens or coins issued by way of ICO are equivalent of securities, whereas mostly they are different from securities, and hence, it is important for companies to highlight such difference to their investors and token buyers. Since the tokens or coins do not represent equity shares of the company, issuing these during ICO shall not affect or dilute the equity of the founders.

ICO Structuring – Blockchain Law

A crucial strategy to structure ICO involves having separate legal entities to issue the tokens or coins and to operate the business. This can ensure minimum legal liabilities and further allow the founders to have flexibility to opt for desired legal structures for both the entities. For example, ICO can be executed using a trust or a foundation, whereas operating entity can be a private limited company capable of issuing equity shares to the founders and investors. In addition, it may be more advantageous to incorporate both the entities in different jurisdictions to avail the advantages of local laws and regulations. For example, ICO operating entity can be incorporated in any of the jurisdiction selected from, Switzerland, Singapore, Hong Kong, British Virgin Islands, Cayman Islands, Isle of Man etc.

Blockchain and ICO – Role of Lawyers

Legal aspects of Blockchain and ICO are crucial for business consideration due the dynamically changing nature of this field. Beginning from ICO legal opinions to ICO structuring, to legal entity incorporation, and further including international legal compliance, ICO lawyers and Blockchain attorneys always work on the edge to assist their clients.

Technology lawyers and law firms that are required to review legal aspects of Blockchain and ICO focus primarily on laws applicable to a business that is on the verge of implementing a Blockchain technology for business operations. This legal analysis also includes determining the best jurisdiction to incorporate legal entity, obtain the required licenses and permits, ensure local and international legal compliance (KYC and AML compliance) etc.

For issuance of coins or tokens during the ICO, lawyers assist clients by reviewing and auditing the ICO legal structure, application of the Howey Test, Family Resemblance Test, Risk Capital Test etc. Additional services include review and audit of the ICO White Paper to ensure compliance with domestic and international laws.

Global Blockchain Lawyers (www.GlobalBlockchainLawyers.com) is a digital platform to discuss legal issues, latest technology and legal developments, and applicable laws in the dynamic field of Digital Currency, Blockchain, Bitcoin, Cryptocurrency and raising capital through the sale of tokens or coins (ICO or Initial Coin Offerings).

Technology Business Corporate Lawyers

Strong expertise in resolving business and personal disputes via mediation, negotiation and out of court settlements

Managing full practice law firm in Delhi and Gurgaon with team of legal experts – Civil and Criminal, Cyber Law Issues, Digital Business Disputes, Social Media Defamation, Personal, Property and Matrimonial Problems, Contracts and Agreements

Starting a new company and launching a business in a place like Gurgaon can be a challenging task. Once business model is finalized, next step is to set up the business and incorporate the company in Gurgaon as it offers many advantages. Hundreds of Fortune 500 companies have set up offices in Gurgaon and Internet (smartphone, tablets & mobiles) penetration is one of the highest in India.

The urban population of Gurgaon has played a major role in creating the booming startup ecosystem along with digital lifestyle. On-demand services are highly preferred and residents of Gurgaon are really forthcoming in using products and services offered by startups.

Incubators in Gurgaon

After global success of businesses like Uber, Amazon and AirBnb, India has its own share of success stories including Ola Cabs, Flipkart, SnapDeal, Oyo Rooms, Grofers, Zomato, and the like. Many of successful Indian companies are either headquartered in Gurgaon, or their major revenues come from consumers in Gurgaon. This has resulted in a vibrant startup ecosystem in Gurgaon that includes numerous incubators and accelerators. Some of these include 91 Springboard and InvestoPad. Such incubators / accelerators also provide co-working spaces along with access to a strong network of Investors, Mentors, Service providers etc.

Incorporating Company in Gurgaon or Delhi

Having corporate base in Delhi NCR provides significant advantages and process to incorporate the company is straightforward. Startups can select appropriate corporate structure based on their business model. For example, tech startups can opt for private limited company (governed by the Companies Act) that requires minimum two directors (co-founders or promoters). This structure is highly preferred by digital startups (B2C and B2B) as its easy to accommodate investors, issue shares (preference shares and equity shares), allocate employee stock options and increase paid up capital to raise subsequent round of funding. In case of only one cofounder, OPC (one person company) can also be considered as corporate structure, which is introduced by latest company law. However, there are restrictions to issue shares to investors and hence as business grows, the OPC can be converted into a private limited company.

Similarly, service businesses can opt for Limited Liability Partnership (LLP) as corporate structure. The LLP includes partners instead of directors as in case of private limited company. Professional service providers like consultants, accountants, lawyers, architects etc. usually opt for LLP.

Office Space in Gurgaon

According to a recent study by US-based realty consultant Colliers International, Gurgaon has beaten Mumbai and Bengaluru to see the highest absorption of office space in Q3 2015, which explicitly implies that Gurgaon is the country’s fastest growing corporate business hub. Latest business hotspots in Gurgaon are located on Golf Course Road (One Horizon Center and Two Horizon Center) and Sohna Road. While manufacturing companies prefer Manesar, NH8 remains the most preferred location to set up offices in Gurgaon. Places like Udyog Vihar and DLF CyberCity are among the best office spaces in Gurgaon, primarily owing to their proximity to NH8.